Credit debt collection from pensions to be prohibited in Uzbekistan

In Uzbekistan, the collection of credit debts from pension funds will be prohibited. This is stated in the Central Bank’s decision adopted today, October 28, titled “On Amendments and Additions to the Regulation on Minimum Requirements for the Activities of Commercial Banks in Their Relations with Consumers of Banking Services.”

According to the report, the Ministry of Justice has registered the decision. The document introduces several new provisions aimed at protecting the rights and interests of consumers when interacting with banks.

In particular:

•  Banks must provide consumers with a checklist outlining potential risks associated with obtaining a loan at the time of issuing credit;
•  When concluding a bank deposit or account agreement, banks must inform depositors about the deposit guarantee system;
•  Banks must have a system in place to review applications from citizens facing financial hardship or difficult life circumstances and must publish this information on their official websites.

In this regard, banks are required to consider applications for loan restructuring, such as extending repayment periods or revising interest rates, including the extension of repayment deadlines by up to ten months for women on maternity or childbirth leave.

Additionally, the document stipulates that:

•  The collection of social benefits and assistance payments provided by the state, including those transferred to social cards, for the repayment of credit debts is prohibited;
•  During online loan applications, it is forbidden to pre-select or automatically mark consent boxes (✅) or predefine loan parameters without the client’s explicit consent.

The regulation will take effect three months after its official publication.

It is worth noting that earlier, the Central Bank described the practice of withdrawing social benefits paid by the state to citizens—without their consent—for the repayment of credit debts as unfair and contrary to the principles of justice.